Customs/Trade Considerations for Motor Carriers and 3PLs
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1 Customs/Trade Considerations for Motor Carriers and 3PLs Presented by Joseph W. Rohe Moderated by Kurt M. Rozelsky Smith Moore Leatherwood LLP Attorneys at Law 2 W. Washington Street, Suite 1100, Greenville SC
2 Joseph W. Rohe Kurt M. Rozelsky Charleston / Greenville Atlanta / Greenville joseph.rohe@smithmoorelaw.com kurt.rozelsky@smithmoorelaw.com
3 PROGRAM TOPICS Recent/upcoming changes in the containerized cargo industry Customs Powers of Attorney INCOTERMS 2010
4 Recent/Upcoming Changes in the Container Cargo Industry
5 Recent/ongoing changes *Revolution/evolution of container shipping industry. *Demands for increased transparency in the supply chain -real time end-to-end visibility. *Digitization. Blockchain anyone heard of this? -Maersk/IBM Trial Program. *Equipment shortages.
6 Upcoming changes *BIGGER ships! -fewer services; -longer outgates. *Carrier emissions rules go into effect *Rate volatility/increasing freight rates. *Significant increase /investment in technology Smith Moore Leatherwood LLP. ALL RIGHTS RESERVED.
7 Customs Powers of Attorney
8 What is a power of attorney? An instrument granting someone authority to act as agent or attorney-in-fact for the grantor. *The principal/agent relationship. *What s that really mean?
9 CBP Form 5291 *grants authority to transact ALL customs business on behalf of the grantor! *grantor remains liable to Customs! *remains valid until revoked! (unless you are a partnership)
10 INCOTERMS 2010
11 What s an INCOTERM? *Published by the International Chamber of Commerce (ICC) and updated about every 10 years. *Developed to provide rules and guidance to the shipping community for the international sale of goods. *NOT limited to international transactions! *Not binding law, but contractually enforceable.
12 The 11 INCOTERMS *Sea & Inland Waterway: FAS (Free Alongside Ship) FOB (Free on Board) CFR (Cost & Freight) CIF (Cost, Insurance & Freight) *All Modes of Transport/Multimodal: EXW (Ex Works) FCA (Free Carrier) CPT (Carriage Paid To) CIP (Carriage & Insurance Paid To) DAT (Delivered at Terminal) DAP (Delivered at Place) DDP (Delivered Duty Paid)
13
14 What s New? *Merged several terms into DAT and DAP; *Clarified proper application of the sea/inland waterway transportation terms (FAS, FOB, CFR & CIF); *For FOB, the long-standing ship s rail rule has been abolished; now, goods are delivered when they are on board the vessel. *Terms should specify destination or point of shipment, as applicable (e.g., DDP Port of Charleston).
15 Why Are INCOTERMS Important? *Establish certain terms, obligations and liabilities of the parties. *Contractually enforceable against parties to contracts of carriage. *Govern risk of loss! Example: shipment damaged or destroyed en route from the manufacturer to port of lading. EXW vs. FOB? 2017 Smith Moore Leatherwood LLP. ALL RIGHTS RESERVED.
16 Questions?
17 Joseph W. Rohe Kurt M. Rozelsky / joseph.rohe@smithmoorelaw.com kurt.rozelsky@smithmoorelaw.com Smith Moore Leatherwood LLP Attorneys at Law
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